Grab admits failure to inform riders of P2-per-minute charge

Officials of the ride-sharing service Grab Philippines on Wednesday admitted that their riders were not informed of the P2-per minute charge that it implemented in July 2017.

Officials said the transport network company was within its rights to impose the charge and that it didn't need government approval for its fare rates.

"There were no [communications] with the riders. Inside the app, in the information card, we've updated that. But when we raised the P2 [per minute], it wasn't included. Hindi namin nailagay," Grab country head Brian Cu said at a press briefing.

"The point that we like to make here is that the price for Grab is not a pre-agreed per minute or per kilometer. Hindi 'yan parang taxi... At the end of the trip, it's the summation of all those factors," he added.

"Sa Grab, the price is the price, it's fixed. What you see is what you pay," Cu said.

Citing the Department Order 2015-011, Cu said that Grab was within its rights to impose the P2-per minute charge.

"Hindi namin tinatago ang fact na nagcha-charge kami ng P2.00 since July last year. We have to submit to the board exactly what date kung kailan 'yun na-implement sa system... We were going within our rights to charge the P2.00," Cu said.

PBA party-list Representative Jericho Nograles urged the ride-sharing company to refund some P1.8 billion to its riders because of alleged overcharging.

Asked if Grab was willing to return the P1.8 billion if proven by the LTFRB to have overcharged, Cu said, "I think hintayin na lang po natin na may ibaba na order, tapos tignan na lang po natin. We're ready to comply with the LTFRB naman and their regulations."

Grab Philippines said the P2-per minute charge was legal and in accordance with Department Order 2015-011 of the Department of Transportation.

"We are not charging any illegal fares. Our fares are legal because under the Department Order 2015-011 of the Department of Transportation, 'Fares are set by the TNCs and is subject to oversight by the LTFRB in cases of abnormal disruptions from the market," Grab legal counsel Miguel Aguila said.

"What this means is that Grab can legally set fares on our own. So we don't need to file a formal petition or we don't need an approval from the LTFRB," he added.

The company explained that 80 percent of the money collected from the P2-per-minute charge goes directly to the drivers while the 20 percent served as Grab's commission.

Grab said it also used proceeds for the P2-per-minute charge to give incentives to drivers and promos to passengers.

At a hearing on Tuesday, LTFRB chairman Martin Delgra III said he was "not fully" satisfied with Grab's explanation as regards the questioned charge.

Another hearing is set on May 29 for Grab Philippines to explain when they imposed the P2-per-minute charge, as well as the algorithm behind the fare. —NB, GMA News